Trichome Financial Corp. announced that it has entered into a $2.25 million term loan with 2673943 Ontario Inc., d/b/a Hello Cannabis. Hello Cannabis has partnered with a second round AGCO lottery winner to launch and operate a retail cannabis store located at 317 Northern Ave. E. in Sault Ste. Marie, Ontario. Upon closing, Trichome Financial advanced the first $1.0 million tranche under the Term Loan, which will be used to fund capital expenditures in connection with the retrofit of Hello SSM, as well as inventory purchases. The Term Loan is secured by a first-ranking, perfected security interest over all of the assets of Hello Cannabis and is personally guaranteed by a number of Hello Cannabis' key shareholders. The Term Loan bears interest at a rate of 10.5% per annum with interest paid monthly. The Term Loan matures in 18 months and carries an accordion feature that enables Hello Cannabis, upon approval from Trichome Financial, to upsize the funded amount of the Term Loan by $1.25 million. As additional consideration, Hello Cannabis will pay Trichome Financial a fixed-term monthly fee equal to 2.0% of gross revenue on sales from Hello SSM. Trichome Financial has also delivered a commitment letter to Hello Cannabis to provide up to an additional $5.0 million in senior secured financing, subject to due diligence and certain other conditions, to support the buildout and inventory requirements for new retail cannabis locations in Ontario. Trichome Financial and Ontario Cannabis Holdings Corp. have mutually agreed to terminate the non-binding term sheet previously announced on December 19, 2019.